A Negative Externality Is an Example of Market Failure

question 49

Essay

A negative externality is an example of market failure.The root of the problem lies in the definition and enforcement of property rights.Explain.

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Definitions:

John Calvin

A French theologian, pastor, and reformer in Geneva during the Protestant Reformation, known for his influential work in the development of the Christian theology system known as Calvinism.

Predetermined

Established or decided in advance, not occurring by chance or without prior planning.

Salvation

Within Christian doctrine, the liberation from sin and its resulting punishments is considered to occur through belief in Christ.

Huguenots

French Protestants in the 16th and 17th centuries who faced severe persecution from the Catholic majority, leading many to flee to other countries.